Railway Supply Community to Law Makers: Don’t Impose Regulations

Rail Supply IndustryThe Willamette Valley Company has joined a growing group of industry leaders within the railway supply community and prominent rail industry trade associations to speak out against the Surface Transportation Board‘s proposal on reregulatory efforts, including so called “reciprocal switching” and commodity reregulation.

Congressional leaders John Thune, Chairman, Senate Committee on Commerce, Science and Transportation and Bill Nelson, Ranking Member; and Bill Shuster, Chairman, House Committee on Transportation and Infrastructure, and Peter DeFazio, Ranking Member, have received a letter signed by dozens of suppliers and contractors pointing out the STB’s “recent trend of imposing regulations first, and discovering the consequences later.”

“As the collective voice of businesses that serve railroads and provide the equipment and technologies to enhance the efficiency and safety of their operations, we know…over-involvement of the federal government in the day-to-day business decisions of railroads once pushed this sector and the larger railroad ecosystem of customers and suppliers to the brink of collapse,” the letter states. “Without the wisdom to partially deregulate the industry in 1980, America would have lost a privately owned and maintained economic engine that provides quality jobs to support families and communities, affordable and environmentally friendly options for businesses to move goods and critical infrastructure to support passenger railroads.”

Here are more excerpts from that letter:

“We are deeply concerned that this regulatory effort could greatly cut into capital spending by the railroads. Past analysis by the Association of American Railroads found that a similar proposal could affect an estimated 7.5 million carloads of traffic, placing nearly $8 billion in revenues at risk. Reduced revenues mean reduced money for investment in the rail network and reduced demand for businesses like ours. Continued investments are critical for maintaining a safe and efficient rail network and allow us to provide strong employment opportunities in our communities.

The railroad supply community plays an integral role in maintaining the world’s safest, most efficient and highly competitive freight railroad system. We also provide high-paying and high-skilled manufacturing jobs in our communities.

We support a transparent and efficient STB and believe that the agency maintains an important role in maintaining a proven regulatory structure. But we do not support the STB’s recent trend of imposing regulations first, and discovering the consequences later.”

Click here to read more.

 

 

Comments are closed.